Acquisition to Strengthen Mad Catz' European Market Position
SAN DIEGO, September 7 /CNW/ - Mad Catz Interactive, Inc. (AMEX/TSX:
MCZ), a leading third-party interactive entertainment accessory provider,
announced today that, consistent with its strategy to further diversify Mad
Catz' products and geographic distribution capabilities, it has acquired
assets and assumed certain liabilities of Joytech from Take-Two Interactive
Software, Inc. (NASDAQ: TTWO) for approximately $3.7 million.
Joytech manufactures third-party video game peripherals and audiovisual
accessories with retail distribution in Europe and North America. The addition
of Joytech personnel will allow Mad Catz to initiate a European product
development effort and bolster Mad Catz' sales team. The European market has
been a key growth driver for Mad Catz and this acquisition reinforces that
strategic initiative.
Mad Catz anticipates that the acquisition will add at least $10 million
in annual revenue, leverage Mad Catz' existing infrastructure, add several new
customers and products and expects the acquisition to be accretive within the
first year of completion. The Company intends to finance the acquisition
through a combination of cash on hand and borrowings under its existing credit
facility.
Commenting on the transaction, Darren Richardson, President and Chief
Executive Officer of Mad Catz, said, "This transaction is consistent with our
strategy to continue to grow profitably, in part by diversifying our product
line-up and geographic reach. Joytech's strong presence in Europe and growing
presence in North America are expected to complement our current operations
and further enhance our worldwide distribution network enabling Mad Catz to
more efficiently deliver a larger portfolio of innovative gaming accessories
to our customers worldwide.
"We remain committed to pursuing additional acquisition opportunities
that can enhance shareholder value by leveraging our existing operating
platform, further diversifying Mad Catz' product offerings and market reach,
and solidifying our role as a market leader throughout the current console
transition and beyond."
About Mad Catz Interactive, Inc.
Mad Catz is a leading provider of innovative peripherals for the
worldwide interactive entertainment industry. Mad Catz designs and markets
accessories for video game systems and publishes video game software,
including the industry leading GameShark brand of video game enhancements. Mad
Catz has distribution through most leading retailers offering interactive
entertainment products. Mad Catz has its operating headquarters in San Diego,
California and offices in Canada, Europe and Asia. For additional information
go to www.madcatz.com.
About Joytech
Headquartered in Windsor England and New York City, prior to this
transaction Joytech was a wholly-owned subsidiary of Take-Two Interactive
Software, Inc., and one of the world's largest manufacturers and distributors
of third-party video game accessories. All Joytech products are designed and
built in-house, providing gamers with high-quality products for all the gaming
consoles, as well as PCs, at competitive prices. For further information on
Joytech peripherals, please visit: www.joytech.net.
About Take-Two Interactive Software
Headquartered in New York City, Take-Two Interactive Software, Inc. is a
global developer, marketer, distributor and publisher of interactive
entertainment software games for the PC, PlayStation(R) game console,
PlayStation(R)2 and PLAYSTATION(R)3 computer entertainment systems, PSP(R)
(PlayStation(R)Portable) system, Xbox(R) and Xbox 360(TM) video game and
entertainment systems from Microsoft, Wii(TM), Nintendo GameCube(TM), Nintendo
DS(TM) and Game Boy(R) Advance. The Company publishes and develops products
through its wholly owned labels Rockstar Games, 2K and 2K Sports, and Global
Star Software; and distributes software, hardware and accessories in North
America through its Jack of All Games subsidiary. Take-Two's common stock is
publicly traded on NASDAQ under the symbol TTWO. For more corporate and
product information, visit their website at www.take2games.com.
Safe Harbor for Forward Looking Statements: This press release contains
forward-looking statements about the Company's business prospects that involve
substantial risks and uncertainties. The Company assumes no obligation to
update the forward-looking statements contained in this press release as a
result of new information or future events or developments. You can identify
these statements by the fact that they use words such as "anticipate,"
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"believe," and other words and terms of similar meaning in connection with any
discussion of future operating or financial performance. Among the factors
that could cause actual results to differ materially are the following: the
ability to maintain or renew the Company's licenses; competitive developments
affecting the Company's current products; first party price reductions; the
ability to successfully market both new and existing products domestically and
internationally; difficulties or delays in manufacturing; or a downturn in the
market or industry. A further list and description of these risks,
uncertainties and other matters can be found in the Company's reports filed
with the Securities and Exchange Commission and the Canadian Securities
Administrators.